Energy has become one of the most discussed topics of the 21st century. As technology continue to advance and individual dependence on gadgets increase, natural resources (such as oil, gas, and coal) continue to deplete—this phenomenon (limited source of energy with increased demands for use) will result in an increased consumer cost and pollution over time. Green, sustainable energy has therefore become the hottest topic among visionaries as possible source for solutions to these issues. Accordingly, more and more individuals, organizations, and governments are investing their money into green, sustainable energy sources, such as wind farms.
With expectations of great return, governments all over the world are allocating billions of tax payers' money to researchers and companies that build huge Mega-Watt (MW) wind turbines. Once built, world-wide investors put other billions of dollars into importing the huge turbines into different countries.
For example, 30 brand-new 2.5 MW GE wind turbines cost investors approximately over 150 million US dollars, excluding installation cost. However, many of these turbines turn right up in a second hand wind turbines market without even getting out of its original package. What are the reasons behind investors' decision to abandon a renewable energy plan as huge and as costly as this one?
Firstly, the climate changes around the world have become unpredictable, where extreme and fluctuating weather condition has limited normal wind turbine operation. Designers and manufacturers certainly take consideration of local climate when they design and build wind turbines for sites around the world. However, historical data can no longer predict future weather change as precisely as it did before, contributing to the incorrect estimate of predicted output of a wind farm in a specific location. In addition, most wind turbines underperform even if installed, as it fails to operate even when the wind speed has finally reached its cut-in speed.
Secondly, wind turbines are expensive. For example, 10 KW brushless generator costs $1000 to purchase, while a wind turbine with the same capacity costs as much as $10,000 to $50,000. Hence, it costs significantly more to set up a wind farm compared to a traditional power station. This is why it is imperative for wind farm owners and investors that governments implement favorable policies to ensure a market for wind energy. Without such policies, the recoup period for initial investment may be significantly lengthened or even be eliminated entirely. This may result in both withdrawal of existing investment and reduced amount of new investment for the field of clean, sustainable wind energy.
Lastly, even if the wind farm is set up with favorable government policies in place, the average recoup period for wind farm investment still can be as long as 10-15 years. The less-than-ideal operation time for most wind turbines is to blame for such long recoup period. An average operation time for a wind turbine is four hours each day. If the operation time is increased to eight hours a day, the turn-around time for investment can be shortened to 5 to 7.5 years. If the operation time of wind turbine can be increased furthermore, the turn-around time can be further shortened accordingly. The ideal solution is to make the wind turbines less expensive and easier to install, and increase its operation time to full 24-hour period each day.